Dick Costolo may get a temporary reprieve
from Wall Street criticism after Twitter Inc. posted quarterly
revenue that topped estimates and forecast that its number of
new users will pick up.
Twitter on Thursday said its fourth-quarter revenue
increased 97 percent to $479.1 million, with the net loss
narrowing to $125.4 million.
The San Francisco-based company also projected adding 13 million to 16 million users in the first quarter, up 4.5 percent sequentially -- faster than the 1.4 percent growth in the prior period.
The results sent Twitter’s shares soaring in extended trading, adding to gains so far this year that are reversing last year’s 44 percent stock price drop.
Chief Executive Officer Costolo, who has been under fire for the company’s slowing user growth and management turbulence, is working to recover investor trust by rolling out new features to attract people to the microblogging site and to rev up advertising revenue.
“We know they have the monetization tools to significantly
grow the business,” said James Cakmak, an analyst at Monness
Crespi Hardt & Co., adding that investors may forgive Twitter
for slow user growth because of moves to distribute tweets more
widely. “They get a pass this time.”
In an interview, Costolo said user growth remains a top priority and added that he is confident Wall Street is gaining “an increasingly solid understanding of the strategy that we’ve laid out, the way we’re pursuing that strategy and how we think about evaluating ourselves as we exercise that strategy.”
Twitter soared as much as 13 percent in extended trading, after closing at $41.26 in New York. The company’s stock plunge last year compared with an 11 percent gain in the Standard & Poor’s 500 Index.
The San Francisco-based company also projected adding 13 million to 16 million users in the first quarter, up 4.5 percent sequentially -- faster than the 1.4 percent growth in the prior period.
The results sent Twitter’s shares soaring in extended trading, adding to gains so far this year that are reversing last year’s 44 percent stock price drop.
Chief Executive Officer Costolo, who has been under fire for the company’s slowing user growth and management turbulence, is working to recover investor trust by rolling out new features to attract people to the microblogging site and to rev up advertising revenue.
In an interview, Costolo said user growth remains a top priority and added that he is confident Wall Street is gaining “an increasingly solid understanding of the strategy that we’ve laid out, the way we’re pursuing that strategy and how we think about evaluating ourselves as we exercise that strategy.”
Twitter soared as much as 13 percent in extended trading, after closing at $41.26 in New York. The company’s stock plunge last year compared with an 11 percent gain in the Standard & Poor’s 500 Index.
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